JSW Energy, led by Sajjan Jindal, has made a firm offer to acquire Reliance Power’s wind power projects for a cash payment ranging between ₹130-135 crore, according to sources familiar with the matter.
Negotiations between the two companies are at an advanced stage, and the deal is expected to be finalized this month.
The wind power project, located in Vashpet, Maharashtra, has a capacity of 45 megawatts and has been operational since 2013. It has a power purchase agreement with Adani Electricity.
Both Reliance Power and JSW Energy declined to comment on the offer.
The proceeds from the sale will be used to repay bank debt. The wind power plant was previously mortgaged with DBS Bank against a loan of ₹110 crore.
Reliance Power recently announced that it settled all its obligations with DBS Bank, freeing the 45 MW Wind Power Project from encumbrance. Additionally, the company settled loans totaling ₹400 crore from ICICI Bank, Axis Bank, and DBS Bank.
Reliance Power’s total debt stood at ₹765 crore as of December 31, 2023. Despite settling most of its debt, it still owes money to other lenders, including Bank of Maharashtra, Punjab National Bank, State Bank of India, US Exim Bank, and Asian Development Bank, as per its FY23 annual report.
